Liberalization of Brazilian economy as explained by Felipe Montoro Jens

Before 1980’s, Brazil economy sector was made of large state owned corporations. As explained by the National Confederation of Industry (CNI), the political regime then focused on the creation of state enterprises across all sector. However, according to Felipe Montoro Jens, the Brazilian government in the late 1980s began the privatization process due to the large external debt.

The economic reforms started in April 1990 with the formation of National Privatization Program. The reforms targeted privatization of companies in the petrochemical, steel, and aeronautical sectors. The Concessions Law of 1995 prioritized privatization in transportation, banking, telecommunication, and sanitations sectors.

In 1997, the establishment of the General Telecommunications Law was marked as the biggest success in privatization program by CNI. As Felipe Montoro point out, with the creation of National Telecommunication Agency (ANATEL), the state was no longer involved in services provision but in regulation. Therefore, there was the creation of a competitive environment. In July 1998, Auctioning of the Telebrás, a state owned enterprise into 12 holding companies was a good example.

This culminated to approving of the Public Private Partnership Act (PPPs) in 2004. For the success and competitiveness of the process, there was consolidation and organization of regulatory agency. In 2008 the General Concession Plan was created and later in 2011, there was the establishment of the General Plan for Universalization of Fixed Telephone Service.

Felipe Montoro is an alumnus of Thunderbird, the American Garvin (USA) where he did masters in international management. Also, he has a business administration degree from Fundao Getlio Vargas. Felipe has a keen interest in the public and private partnership in Brazil.